Question: The labor market is a market in which:

Answer: social and political pressures are particularly strong.

Question: All of the following are possible explanations for the fact that on average women earn lower wages than men in the United States except:

Answer: women are more productive than men on average.

Question: Institutional discrimination exists when:

Answer: the structure of a job makes it difficult for certain groups of individuals to succeed.

Question: Demand-side discrimination occurs when:

Answer: employers pay women less than men for doing the same job.

Question: The price of apples is currently $1 per pound. If apples are sold in a competitive market and the price of apples increases to $2 per pound, the marginal revenue product (MRP) of labor used to produce apples would:

Answer: double

Question: The derived demand curve for labor shows the:

Answer: maximum amount of labor, measured in labor hours, that a firm will hire at various wages.

Question: The marginal revenue product of an input tends to decrease as:

Answer: more of the input is used.

Question: Refer to the table shown.The marginal physical product of the sixth worker is _____, and the average product of six workers is _____.

Answer: 6; 15

Question: Refer to the table shown.If the price per unit of product is $2 and the wage rate is $25, a profit-maximizing firm operating in competitive markets would hire:

Answer: Either 4 or 5 workers

Question: If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:

Answer: rise because fewer workers are working with the same amount of capital.

Question: Refer to the graph shown.If labor supply shifts from S1 to S2, the firm will:

Answer: reduce employment from q1 to q2 to maximize profit where MRP = W.

Question: The opportunity cost of leisure:

Answer: increases as wages get higher.

Question: The concept of ____________________ looks at the demand for factors of production by firms, which depends on consumers' demands.

Answer: Derived demand

Question: ___________________ refers to the marginal revenue a firm expects to earn from selling an additional worker's output.

Answer: Marginal revenue product

Question: Which of the following is most likely to reduce the supply of labor?

Answer: An increase in the value placed on leisure by workers

Question: The demand for labor is a derived demand because:

Answer: the demand for labor comes from the demand for output.

Question: Which of the following will not shift the demand for labor to the right?

Answer: An increase in the wage rate

Question: An increase in the wages of truck drivers might be explained by which of the following factors?

Answer: An increase in shipments in the retail and wholesale industries

Question: A reduction in the demand for labor will cause wages to:

Answer: decrease and employment to decrease.

Question: Firms pay efficiency wages because these wages:

Answer: increase worker productivity.

Question: Comparable worth laws are laws that mandate comparable pay for:

Answer: comparable work.

Question: Efficiency Wages:

Answer: Wages paid above the going-market wage to keep workers happy and productive.

Question: Comparable Worth Laws:

Answer: Laws mandating comparable pay for comparable work.

Question:

Answer: The marginal revenue a firm expects to earn from selling an additional worker's output.

Question:

Answer: The additional units of output that hiring an additional worker will bring about.

Question: Derived Demand Curve for Labor:

Answer: A curve that shows the maximum amount of labor, measured in labor hours, that a firm will hire.